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eluetkenhaus
New Member

1099r rollover to IRA

I moved my 401k to and IRA. I filled out what was on 1099r form and now I have to pay Federal and State taxes.

If I rolled over the fund to an IRA, does that make me pay taxes on it.
1 Best answer

Accepted Solutions
HelenaC
New Member

1099r rollover to IRA

No, you are not taxed on the 401K distribution if you roll it over to your IRA within 60 days of your distribution.  At this point it would be considered a rollover, which is nontaxable transaction. 

In TurboTax, once 1099-R reporting 401K distribution is entered, if code G reports your transaction, the rollover is automatically applied and the income is not taxable.  

Otherwise, you will be asked what you did with the money. Once you answer that you moved the funds to another retirement account, the distribution becomes rollover and is not taxable


To enter your 1099-R:

  • Type 1099-R in the search box and click search.
  • Click on Jump to 1099-R.
  • Continue with the onscreen interview.


See the screenshot below.

View solution in original post

3 Replies
HelenaC
New Member

1099r rollover to IRA

No, you are not taxed on the 401K distribution if you roll it over to your IRA within 60 days of your distribution.  At this point it would be considered a rollover, which is nontaxable transaction. 

In TurboTax, once 1099-R reporting 401K distribution is entered, if code G reports your transaction, the rollover is automatically applied and the income is not taxable.  

Otherwise, you will be asked what you did with the money. Once you answer that you moved the funds to another retirement account, the distribution becomes rollover and is not taxable


To enter your 1099-R:

  • Type 1099-R in the search box and click search.
  • Click on Jump to 1099-R.
  • Continue with the onscreen interview.


See the screenshot below.

centers
New Member

1099r rollover to IRA

It shows up in Turbo Tax as taxable dollar amount even though the Code G is entered. It looks to me like I am paying tax on it even though it was rolled over in the 60 days.

DoninGA
Level 15

1099r rollover to IRA


@centers wrote:

It shows up in Turbo Tax as taxable dollar amount even though the Code G is entered. It looks to me like I am paying tax on it even though it was rolled over in the 60 days.


If you are looking at the summary screen it will show all income you have reported.  Look at your actual tax return Form 1040 on Lines 4b or 5b to see if the the distribution is being entered as taxable income.  If there is no amount entered on Lines 4b or 5b then it is not taxable income.

(Lines 4a and 4b for an IRA distribution.  Lines 5a and 5n for a pension or annuity distribution)

 

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

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